Restructuring

3 Months Ended

Jan. 31, 2021

Restructuring and Related Activities [Abstract]

In the fourth quarter of fiscal 2020 and first quarter of fiscal 2021, the Company implemented nationwide reductions in force, which were substantially completed in the fourth quarter of fiscal 2020 and first quarter of fiscal 2021, respectively. During the third quarter and first nine months of fiscal 2021, the Company recognized pre-tax restructuring charges, net of $(0.1) million and $1.5 million, respectively, related to these reductions in force, which were primarily severance and separation costs.

During June 2020, the Company's Board of Directors approved the closure and eventual disposal of its manufacturing plant located in Humboldt, Tennessee. Operations ceased at the Humboldt plant in July 2020. During the third quarter of fiscal 2021, the Company sold the Humboldt plant and recognized a gain of $2.3 million on the sale. During the third quarter and first nine months of fiscal 2021, the Company recognized pre-tax restructuring charges, net of $(0.7) million and $3.9 million, respectively, related to the closure of the plant. Included in the $3.9 million of restructuring charges for the first nine months of fiscal 2021 were $0.9 million of severance and separation costs and $3.0 million for equipment, inventory and facilities-related expenses.

A reserve for restructuring charges is included in accrued compensation and related expenses in the condensed consolidated balance sheets as of January 31, 2021 which relates to employee termination costs accrued but not yet paid as follows:


	January 31,
(in thousands)	2021
Restructuring reserve balance at May 1	$	189
Expense	1,746
Payments and adjustments	(1,767)

Restructuring reserve balance at January 31	$	168